Exercise 4.17A Comprehensive exercise with sales discounts LO 4-2, 4-3, 4-4,4-6, 4-7, 4-8 Junker's Stash started the Year 2 accounting period with the balances given in the financial statements model shown below. During Year 2. Junker's Stash experienced the following business events: 1 Paid cash to purchase $83,000 of merchandise inventory 2 The goods that were purchased in Event 1 were delivered FOB destination, Freight costs of $1660 were paid in cash by the responsible party 3a. Sold merchandise for $91,500 under terms 1/10,n/30. 3b Recognized $48,400 of cost of goods sold. 4a Junker's Stash customers retumed merchandise that was sold for $2,360. 46. The merchandise returned in Event 4a had cost Junker's Stash $1,380. S The merchandise in Event 3a was sold to customers FOB destination. Freight costs of $1780 were paid in cash by the responsible party 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount. 6b. Collected the balance in the accounts receivable account. 7 Paid cash of $7.175 for selling and administrative expenses. 8 Sold the land for $9,750 cash Required o. Record the above transactions in a financial statements model. The first event is recorded as an example, b. Determine the amount of net sales. c. Prepare a multistep income statement. Include common size percentages on the income statement. d. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year 2? Required A Required a Required Required 0 Record the above transactions in a financial statements model. The first event is recorded as an example. (In the Cash Flow column, use to designate operating acth and NC for Net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the Statement of Cash Flows column mas corresponding input needed. JUNKER'S STASH Financial Statements Model Balance Sheet Income Statement Revenue Expense Gain Loss Net Income Statement of cath Flow Assets Accounts Receivable Inventory Land Cash 93.000- Event No Beg bal 1 2 Stockholders' Equity Common Retained Stock Earnings 83,000 39 900 + 16.300 13600 - + + + 35 40 40 5 ba Gb 7 End bal 93,000 0 16 300 13,600 83 000 39.900 Required 8 > earch O Required A Required B Required C Required Determine the amount of net sales. (Round your answe Net sales